Regulatory Alerts2025-05-19
SEBI Circular on Norms for Internal Audit Mechanism and Audit Committee Composition for Market Infrastructure Institutions
The Securities and Exchange Board of India (SEBI) has issued a circular mandating specific governance standards for Stock Exchanges, Clearing Corporations, and Depositories. The regulation requires these institutions to appoint independent external firms for annual internal audits that report directly to the Audit Committee, while prohibiting executive directors from serving on that committee. These provisions aim to strengthen risk management and transparency within market infrastructure entities and become effective 90 days after the circular's issuance.
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